The Leading Source Of Original Research And Insights On Business Model Strategy And Digital Business Models

3 Value Proposition Examples You Can Learn From

A value proposition is one of the key building blocks for any business model. It is the benefit both in terms of gains or reduced pains a potential customer, or key partner might experience.

Indeed, the value proposition isn’t just a promise and payoff for customers, but that is also very important to connect key players (employees, distributors, partners and more) both internally and externally to the organization.

The payoffs that a stakeholder (partner, employee, customer, user or any other key player for the organization) gains from interacting with a company.

Business value isn’t intended just as monetary value. Business value is also created when from the interaction, there is no money exchanged, yet the interaction has an economic benefit for someone else.

For instance, Facebook is a media business, which offers a free platform to its users. Thus, (as of now) there is no exchange of money between Facebook and its users. However, the actions users take on the Facebook platform are valuable for businesses willing to capture some of that value by advertising on Facebook‘s newsfeed.

A value proposition might be defined as anything the is valuable to a set of key partners and players for the company’s business model. Indeed, a value proposition is the glue that keeps together the company’s business model in the long-run and what makes it sustainable.

Indeed, it would be a mistake to believe that a value proposition is the same for a small organization vs. a business which has scaled up and it has already hundreds if not thousands of employees and hundreds of thousands of customers.

Apple is a tech giant, and as such, it encompasses a set of value propositions that make Apple’s brand recognized, among consumers. The three fundamental value propositions of Apple’s brand leverages on the “Think Different” motto; reliable tech devices for mass markets; and in 2019, Apple also started to emphasize more and more about privacy to differentiate from other tech giants.

A company like Amazon has multiple value propositions, as it serves several target customers in different markets. With its mission “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online and endeavors to offer its customers the lowest possible prices,” Amazonvalue propositions range from “Easy to read on the go” for a device like Kindle, to “Sell better, sell more” to its marketplace.

Users: a free search enginefor billions of users around the world. Users get a free, seamless engine that helps them find an answer to anything. Google also provides now advanced features that enable a very advanced and rich experience to users. Among all the partners Google‘s users are the most important. Even though users don’t pay for Google search, they are at the core of the overall Google business model. Without users, Google would not have a business model in the first place.

Businesses advertising on Google: The core of theGoogle business modelis advertising, focused ontargeted text-based ads for businessesoffered via the AdSense network. BeforeGoogle existed,d there was no way for marketers to know in details all the conversion metrics of their ads. WhileOverture was the first in offering CPC advertising, Google managed to scale it up at massive levels.

Publishers: BeforeGoogle disrupted the advertising world and took over the digital advertising market, a few established publishers could make money via advertising. With its AdSense network,Googlealso allowedsmall publishers to monetize their content.

Developers: in a world where AI and machine learning have become critical to create products that people want, developers have become even more important than publishers – I argue – for the development and evolution of Google‘s future business model.

Post navigation

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which target is to reach over two million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy |
Visit The FourWeekMBA BizSchool | Or Get in touch with Gennaro here

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

disable

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.